Fitch Rates California Public Works Board $321MM UC Lease Bonds 'AA-'.NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch assigns an 'AA-' rating to the California State Public Works public works
Construction projects, such as highways or dams, financed by public funds and constructed by a government for the benefit or use of the general public.
Noun 1. Board (SPWB) lease revenue refunding bonds issued on behalf of the Regents of the University of California The Regents of the University of California make up the governing board of the University of California. The Board has 26 full (i.e., voting) members:
---Approximately $161.2 million lease revenue refunding bonds 2007A (Various University of California The University of California has a combined student body of more than 191,000 students, over 1,340,000 living alumni, and a combined systemwide and campus endowment of just over $7.3 billion (8th largest in the United States). Projects);
---$46.6 million lease revenue refunding bonds 2007B (Various University of California Projects);
---$113 million lease revenue refunding bonds 2007C (Various University of California Projects).
The bonds are expected to price on or about April 4 via negotiation through a syndicate led by Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. & Co. In addition, Fitch affirms the 'AA-' rating of $1.8 billion of outstanding SPWB lease revenue bonds issued for the Regents. The Rating Outlook is Stable.
Proceeds of the 2007A and 2007B bonds will be used to current refund and defease a portion of outstanding 1993A bonds ($181.2 million) and 1993B bonds ($52.5 million), respectively. Proceeds of the 2007C bonds will advance refund and defease all of the outstanding 1997C bonds ($123.6 million).
Debt service on lease revenue bonds is equal to annual rental payments made by the Regents under various facility leases. Annual rental payments are payable from lawfully available funds of the Regents, including, but not limited to, state appropriations. The Regents is required by statute to annually allocate from the first appropriated state funds amounts sufficient to pay rental payments. This statute also provides for a continuing appropriation for debt service during periods when the state is operating without a budget or lease rental payments have been excluded from an adopted budget. In the absence of sufficient, timely appropriation of funds by the state, the Regents covenants to take all actions necessary to make required lease payments.
The 'AA-' rating is based on University of California (UC's) credit profile, as the Regents has demonstrated its ability and willingness to meet SPWB obligations from UC's general revenues during years when adoption of a state budget, and related receipt of state appropriations, was substantially delayed. UC's credit strengths include an excellent reputation for academics, research, and medical care, strong student demand, diverse revenues, significant balance sheet resources, and a track record of superior financial management during periods when state funding fluctuates. The main credit concerns are the on-going capital and related financing pressures associated with accommodating California's growing population and recent volatility in state funding.
UC's revenue sources are diverse. Approximately 50% of UC's fiscal 2006 revenues were generated by the five medical centers (30%) and contracts and grants (20%). State appropriations added an additional 13% to revenues, while tuition and fee revenues accounted for 8%. After several years of reductions in state appropriations, UC received a 5% increase for fiscal 2006. The increase is part of the higher education higher education
Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. compact between the state, UC, and California State University Enrollment
. State funding reductions in prior years were handled through expense reductions and student fee increases. Fitch rates the general obligation debt of the state 'A+'. UC's balance sheet continues to be a major credit strength. As of June 30, 2006, university investments equaled approximately $14 billion. Liquid short-term investment pool assets totaled $7.9 billion, or 90% of total debt and 51% of expenses, excluding federal laboratories. Campus foundations hold an additional $3.6 billion of investments in support UC's mission and its programs.
UC consists of ten campuses, Berkeley, Davis, Irvine, Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , Merced, Riverside, San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , Santa Barbara Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Santa Cruz, and San Francisco. Full-time equivalent student enrollment for fiscal 2006 was 205,321, which was 1.9% higher than the prior year.
In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site.